How the Art of Thinking Clearly Can Help Us in Investing: Part 5
By The Smart Investor  •  March 23, 2023
Let’s continue with this series on cognitive biases and fallacies written by Rolf Dobelli in his book “The Art of Thinking Clearly”. Here is a quick rundown of the first four parts in case you have not read them. Part 1 – click HERE Part 2 – click HERE Part 3 – click HERE Part 4 – click HERE We feature another three examples of how our thinking, perception and judgement may become clouded. 12. Exponential growth Human minds are trained to think linearly. Normal arithmetic progression (i.e. adding up numbers sequentially) is easy for our brains to wrap around. However, in recent years and with the advent of the Internet, some companies and businesses have experienced exponential growth. Exponential growth requires you to think in a geometric progression (i.e. multiplication of a sequence of numbers by a common ratio). Investors would find it tough to fathom the growth of such companies as such growth...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.

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